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February 12, 1979 Page 6 UTILITY RATE STUDY Acting Administrator Anderson reviewed the proposed resolution concerning City service fees and operating and maintaining the water utilities account, and read the resolution. Councilmember Forslund explained that the intend of the penalties for not getting the cards back in was not to raise money, but to get the cards back. Councilmember Rowley reported that the City rarely turns water off in the winter, and the intent of the resolution is to allow a notice to go out with the next billing, and the charges to take affect with the following billing. MSP (Hodges- Forslund) to adopt Resolution #966. 5 ayes PHONE SYSTEM Acting Administrator Anderson reported that Staff had been studying the present phone system for the past six months, since it is both outdated and insufficient. He added that there is a major problem in both incoming and outgoing calls due to the busy lines. He added that in 1978 the Council allocated $10,500 for a new system, and the 1979 budget allows for $6,500. Acting Administrator Anderson reviewed the criteria used and the benefit of going with Northwestern Bell versus a private company, and the four systems outlined by Northwestern Bell which could meet the City's needs. Councilmember Forslund asked if the recommended Dialog system could be added to the present line. Jack Foster of Norwestern Bell, replied that a larger set would have to be put in for the receptionist, who would then transfer the calls to the smaller sets. Councilmember Rowley stated that she understood the need for a change in the phone system since it was very difficult at times to call in or out of City Hall. She added that the receptionist could assist in many other areas also. Councilmember Ziebarth asked if the City could go from the Dialog system to another system in the future. Ron Berry, of Northwestern Bell, replied that the system has a maximum capacity of 56 stations, while City Hall only has 22 presently, which would allow for a good deal of expansion. He added that the system should last the City at least seven years, and that in that time their needs would change again, and they would most likely look at another system then. Councilmember Ziebarth asked if the proposed system could be tied into a new system in the future. Mr. Berry replied that most likely very little would be able to be used in the future. Mr. Foster added that if the City does change systems in the future, Northwestern Bell would give them credit for the equipment that was being used already. Councilmember Hodges stated that he felt the Dialog system was the way to go. He added that Staff had done a very good job in their research.